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Power Generation
Plants in the Philippines have an installed capacity of about
15,937 megawatts (MW), 49% of which (7,809MW) is generated using
local and imported oil and coal. The current natural gas fired
power generation plants only represent 8.3% of the total energy
supply mix at 2,700 megawatts. The Clean Air Act of 1999 (Republic Act 8749 or RA8749) also called for
the mandatory decommissioning or conversion to natural gas, of
oil and coal power generating plants beginning 2011. It is
projected that by the year 2017, the Philippines will need an
additional 8,000MW of electricity due to the 4.6% annual
increase in energy consumption, and a series of decommissioned
power generating plants affected by the
Clean Air Act of 1999.
Natural gas for use as powerplant fuel is the only viable and
RA8749 compliant alternative to oil and coal, to satisfy this
inevitable shortage in power generation.

Additionally, natural gas is also used in the
production of plastics, desiccant systems, pharmaceutical
applications, and recycling. The Philippines is a major
destination of foreign corporations for manufacturing their
products, but the use of natural gas in the industrial and
commercial sector only exists in their long term plans.

TRANSPORT SECTOR

Supplying CNG as a Cheaper and Cleaner Diesel and Petrol
Alternative

The Philippine public Transport Sectorhas pioneered the use of Compressed Natural
Gas (CNG) as a cleaner and cheaper diesel alternative. Executive
Order 290 (EO290) signed by former President Gloria Macapagal
Arroyo in 2002 called for the use of CNG in lieu of diesel to
support the critical Philippine public transport sector. EO290
applies to the 20,000 public transit buses, 197,000 jeepneys,
taxis, and tricycles that are Government-licensed to service the
commuting public of the Philippines.